Apple's latest overhaul to concentrate on cutting product line, bureaucracy
Article Abstract:
Apple announced another round of layoffs and product cutbacks in an ongoing attempt to improve the struggling computer company's bottom line. Apple will reduce its workforce of 13,000 by several thousand, and cut back on products that are not performing. Apple tried a similar combination of cost cutting and streamlining of product offerings in 1996, and some analysts are skeptical that a second round will produce drastic changes. Apple will post a big loss for the March quarter due to charges associated with the layoffs. The company will try to stabilize expenses on a revenue of $8 billion, a 255% reduction from Apple's 1995 peak, but continued weak sales could result in an even lower break-even point. Steve Jobs has been a part of many recent decisions at Apple, including choices about top executives, leading many to wonder whether he will eventually take control. Others say his role is still limited, and that Jobs is reluctant to take on the time demands and responsibility of a more involved role at Apple.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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Apple's Newton unit to be independent, wholly owned and seeking investors
Article Abstract:
Apple has decided to restructure its Newton division and make the hand-held computer unit an independent company. The name for the new company has not yet been chosen, but it will have its own board of directors and its own stock, though it will remain a wholly owned subsidiary of Apple. Apple's VP in charge of the Newton system group, Sandy Bennett, is to be the new company's CEO. A large market has emerged for personal organizers and small hand-held computers that are priced at only a few hundred dollars. The Newton, on the other hand, is priced at almost $1,000. Mr. Bennett has decided to focus on vertical markets, such as inventory control and health care, where prices for hand-held devices with custom-made software are between $5,000 and $10,000. Analysts believe the restructuring step is one of the least risky moves that Apple could make.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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Comment about this article or add new information about this topic:
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